State economy lags behind country's

The Massachusetts economy slowed in the second quarter and lagged the national growth rate for the first time since last year, the University of Massachusetts reported. The state economy expanded at 1.6 percent annual rate from April to June, according to UMass.

The national economy grew at a 1.9 percent rate, the Commerce Department reported. The last time the state's economy lagged behind the country as a whole was the third quarter of 2007, when it grew at a 2.8 percent rate, compared to 4.9 percent nationally.

Housing and consumer sectors, such as construction and retail, continue to struggle, but technology, science and health care are expanding, UMass analysts said. Still, the state labor market is weakening.

Employment grew at less than a half percent annual rate in the second quarter, while the unemployment rate rose to 5.2 percent in June, up from 4.4 percent in March, the end of first quarter.
(By Robert Gavin, Globe staff)